Problem 11-12 (Algo) Effect of transactions on liquidity measures LO 1 Selected balance sheet accounts for Tibbetts Company on September 30, 2019, are as follows: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Accounts payable Other accrued liabilities Short-term debt Total current liabilities $ 38,400 108,000 132,000 150,000 16,800 $445,200 $126,000 30,800 56,000 $212,800 Required: a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2019. b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2020. Prepare journal entries for the below transactions and Indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use + for increase. - for decrease, and (NE) for no effect. 1. Credit sales for the year amounted to $288,000. The cost of goods sold was $187,200. 2. Collected accounts receivable, $302,400. 3. Purchased inventory on account, $201,600. 4. Issued 600 shares of common stock for $22 per share. 5. Wrote off $8,400 of uncollectible accounts using the allowance for bad debts.. 6. Declared and paid a cash dividend. $24,000. 7 Sold marketable securities costing $31.200 for $37.200 in cash.